
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document affected by Public Law 107-90 Section 107(c)]
[CITE: 45USC231n-1]

 
                           TITLE 45--RAILROADS
 
               CHAPTER 9--RETIREMENT OF RAILROAD EMPLOYEES
 
             SUBCHAPTER IV--RAILROAD RETIREMENT ACT OF 1974
 
Sec. 231n-1. Social Security Equivalent Benefit Account


(a) Establishment

    There is hereby created an account in the Treasury of the United 
States to be known as the ``Social Security Equivalent Benefit 
Account''.

(b) Transfers, etc., to Social Security Equivalent Benefit Account

    (1) There is hereby appropriated to the Social Security Equivalent 
Benefit Account for each fiscal year, beginning with the fiscal year 
beginning October 1, 1984, an amount equal to the sum of the following 
amounts:
        (A) Amounts covered into the Treasury (minus refunds) during 
    such fiscal year under sections 3201(a), 3211(a)(1), and 3221(a) of 
    the Railroad Retirement Tax Act [26 U.S.C. 3201(a), 3211(a)(1), 
    3221(a)].
        (B) The amount which (but for this section) would have been 
    transferred to the Railroad Retirement Account under section 121(e) 
    of the Social Security Amendments of 1983 to the extent that the 
    amount which would have been so transferred is attributable to 
    taxation of social security equivalent benefits.

Amounts appropriated to the Railroad Retirement Account shall be 
appropriately reduced to take into account the amounts appropriated 
under this paragraph to the Social Security Equivalent Benefit Account.
    (2) On and after October 1, 1984, any amount which (but for this 
section) would have been transferred to the Railroad Retirement Account 
pursuant to paragraph (2) or (4) of section 231f(c) of this title shall 
be transferred to the Social Security Equivalent Benefit Account. On and 
after October 1, 1984, no transfer shall be made to the Railroad 
Retirement Account pursuant to paragraph (2) or (4) of section 231f(c) 
of this title.
    (3) To the extent that the authorization for appropriation contained 
in section 231n(b) of this title is attributable to the cost of social 
security equivalent benefits, on and after October 1, 1984, any 
reference in such section to the Railroad Retirement Account shall be 
treated as a reference to the Social Security Equivalent Benefit 
Account.
    (4) Amounts appropriated or transferred to the Social Security 
Equivalent Benefit Account under this section shall be credited or 
transferred to such Account at the same time and in the same manner as 
such amounts would have been credited or transferred to the Railroad 
Retirement Account but for this section.

(c) Availability and transfer of funds

    (1) Except as otherwise provided in this section, amounts in the 
Social Security Equivalent Benefit Account shall be available only for 
purposes of paying social security equivalent benefits under this 
subchapter and to provide for the administrative expenses of the Board 
allocable to social security equivalent benefits.
    (2) On and after October 1, 1984, any transfer which (but for this 
paragraph) would be required to be made from the Railroad Retirement 
Account under paragraph (2) or (4) of section 231f(c) of this title 
shall be made from the Social Security Equivalent Benefit Account.

(d) Transfers from Railroad Retirement Account to Social Security 
        Equivalent Benefit Account; retransfer

    (1) Whenever the Board finds that the balance in the Social Security 
Equivalent Benefit Account will be insufficient to pay social security 
equivalent benefits which it estimates are due in any month, it shall 
request the Secretary of the Treasury to transfer from the Railroad 
Retirement Account to the credit of the Social Security Equivalent 
Benefit Account such moneys as the Board estimates will be necessary for 
the payment of such benefits, and the Secretary shall make such 
transfer. Whenever later in such month there is a transfer to the Social 
Security Equivalent Benefit Account under paragraph (2) or (4) of 
section 231f(c) of this title, the amount so transferred shall be 
immediately retransferred to the Railroad Retirement Account. The amount 
retransferred under the preceding sentence shall not exceed the amount 
of any outstanding transfers under this paragraph from the Railroad 
Retirement Account plus such additional amounts determined by the Board 
to be equal to the loss of interest to the Railroad Retirement Account 
resulting from such outstanding transfers.
    (2) Whenever the Board determines that--
        (A) amounts in the Railroad Retirement Account will not be 
    sufficient to pay the annuities which it estimates are due, or will 
    become due, from such Account, and
        (B) the transfer under this paragraph will not jeopardize the 
    present or future payment of social security equivalent benefits,

the Board shall request the Secretary of the Treasury to transfer from 
the Social Security Equivalent Benefit Account to the Railroad 
Retirement Account such moneys as the Board estimates will be necessary 
for the payment of such annuities, and the Secretary shall make such 
transfer. No transfer under this paragraph shall be required to be 
repaid.

(e) Applicability of section 231n

    The provisions of subsections (e), (f), and (g) of section 231n of 
this title are hereby made applicable to the Social Security Equivalent 
Benefit Account.

(f) References to Railroad Retirement Account deemed references to 
        Social Security Equivalent Benefit Account; ``social security 
        equivalent benefits'' defined

    (1) For purposes of making payments of social security equivalent 
benefits, references in the \1\ subchapter to the Railroad Retirement 
Account shall be treated as references to the Social Security Equivalent 
Benefit Account.
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    \1\ So in original. Probably should be ``this''.
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    (2) For purposes of this section, the term ``social security 
equivalent benefits'' means benefits payable under this subchapter which 
are of a kind taken into account in determining the amount of transfers 
made under section 231f(c)(2) of this title.

(Aug. 29, 1935, ch. 812, Sec. 15A, as added Pub. L. 98-76, title V, 
Sec. 501(a), Aug. 12, 1983, 97 Stat. 438.)

                       References in Text

    Section 121(e) of the Social Security Amendments of 1983, referred 
to in subsec. (b)(1)(B), is section 121(e) of Pub. L. 98-21, title I, 
Apr. 20, 1983, 97 Stat. 83, which is set out as a note under section 401 
of Title 42, The Public Health and Welfare.


                             Effective Date

    Section 501(b)(1) of Pub. L. 98-76 provided that: ``The amendment 
made by this section [enacting this section] shall take effect on 
October 1, 1984.''


Treatment of Tier 1 Portion of Tax Imposed With Respect to Compensation 
                            Paid Before 1985

    Section 501(b)(2) of Pub. L. 98-76, as amended by Pub. L. 99-514, 
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
    ``(A) The tier 1 portion of the tax imposed by section 3201, 3211, 
or 3221 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] [26 
U.S.C. 3201, 3211, 3221], as the case may be, with respect to 
compensation paid before 1985 shall be treated as described in 
subparagraph (A) of section 15A(b)(1) of the Railroad Retirement Act of 
1974 [subsec. (b)(1)(A) of this section].
    ``(B) For purposes of subparagraph (A), the tier 1 portion of any 
tax is so much of such tax as is determined by reference to the rates of 
taxes imposed by chapter 21 of the Internal Revenue Code of 1986 [26 
U.S.C. 3101 et seq.].''
